Peoples Federal Bancshares, Inc. Announces Second Quarter and Year to Date Results for Fiscal Year 2012

Mon Apr 30, 2012 4:30pm EDT

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BRIGHTON, Mass., April 30, 2012 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced second quarter and year to date earnings for the fiscal year ending September 30, 2012. For the three months ended March 31, 2012, the Company reported net income of $588,000 or $0.09 per share, basic and diluted, as compared to net income of $824,000 or $0.12 per share, basic and diluted, for the same period last year. For the six months ended March 31, 2012, the Company reported net income of $1.4 million or $0.22 per share, basic and diluted, as compared to net income of $1.8 million or $0.27 per share, basic and diluted for the same period last year.

Net interest income and dividend income for the three months ended March 31, 2012 totaled $4.2 million as compared to $4.1 million for the three months ended March 31, 2011. Non-interest income totaled $375,000 for the three months ended March 31, 2012 as compared to $437,000, for the three months ended March 31, 2011. Non-interest expense totaled $3.6 million for the three months ended March 31, 2012 as compared to $3.2 million for the three months ended March 31, 2011, reflecting higher salaries and employee benefits and other operating expenses, particularly, advertising expense, which increased $131,000, as the Company expanded advertising efforts to grow its market share and emphasize our branch network.    

Net interest and dividend income for the six months ended March 31, 2012 totaled $8.5 million as compared to $8.2 million for the six months ended March 31, 2011. Non-interest income totaled $828,000 for the six months ended March 31, 2012 as compared to $976,000 for the six months ended March 31, 2011. The decrease was due to the decrease in net gains on sales of mortgage loans of $116,000, loan servicing fees of $65,000 and other income of $71,000, offset by the increase in the cash surrender value of life insurance of $90,000 and customer service fees of $14,000. Non-interest expense totaled $6.9 million for the six months ended March 31, 2012 as compared to $6.3 million for the six months ended March 31, 2011, reflecting higher salaries and employee benefits, advertising expenses, data processing expenses and equipment expenses. 

Since September 30, 2011, the Company's balance sheet has increased by $3.7 million, or 0.7%, to $557.9 million.  Net loans increased $14.0 million, or 3.4%.  The increase in loans was due to the increase in residential real estate and commercial loans, offset by the decrease in commercial real estate loans. Cash and cash equivalents decreased by $21.5 million to $40.2 million at March 31, 2012 from $61.7 million at September 30, 2011.  This decrease was the result of continuing to deploy cash and cash equivalents into loans and investment securities. Investment securities increased $10.9 million, or 22.7%, to $59.1 million at March 31, 2012, from $48.2 million at September 30, 2011. Federal Home Loan Bank borrowings increased by $6.0 million, or 33.3%, from September 30, 2011, as the Company took advantage of low long-term interest rates.  Deposits decreased slightly to $412.5 million at March 31, 2012 from $412.6 million at September 30, 2011. At March 31, 2012, total stockholders' equity was $113.4 million, a decrease of $2.3 million from $115.7 million at September 30, 2011. The decrease in stockholders' equity during the period was due to the repurchase of $4.1 million of the Company's common stock for the stock repurchase plan, partially offset by net income of $1.4 million. On February 21, 2012, in accordance with the Company's 2011 Equity Incentive Plan, the Company granted 281,700 shares of restricted stock awards to its Board of Directors and certain employees of the Company. The decrease in stockholders' equity was also offset by equity incentive shares earned of $222,000.

Non-performing assets totaled $2.5 million, or 0.44%, of total assets at March 31, 2012, as compared to $3.3 million, or 0.59%, of total assets at September 30, 2011. Classified loans decreased to $11.7 million as of March 31, 2012 compared to $12.6 million at September 30, 2011. Also, the Company provided $250,000 to the provision for loan losses during the six months ended March 31, 2012, reflecting the overall increase in total loans along with the qualitative and quantitative changes within each loan portfolio segment.    

Maurice H. Sullivan, Jr., Chairman and Chief Executive Officer of the Company, commented, "Peoples Federal Bancshares, Inc. continues to focus on strong asset quality and credit management as net loans have increased $14.0 million during the six months ended March 31, 2012 and classified assets have decreased during the same period. In addition, during the quarter ended March 31, 2012, the Company also announced a second plan to repurchase five percent of the Company's outstanding shares. To that end, we repurchased 134,300 shares during the quarter ended March 31, 2012."

Certain statements herein constitute "forward-looking statements" and actual results may differ from those contemplated by these statements.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may."  Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which Peoples Federal Bancshares, Inc. is engaged and changes in the securities market.  The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.

 
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARY
     
CONSOLIDATED BALANCE SHEETS
     
  March 31, September 30,
  2012 2011
  (Unaudited)  
  (In thousands, except share data)
ASSETS
Cash and due from banks  $ 8,379  $ 9,462
Interest-bearing demand deposits with other banks and money market mutual funds  27,776  44,255
Federal funds sold  55  9
Federal Home Loan Bank - overnight deposit  4,001  8,003
Total cash and cash equivalents  40,211  61,729
Securities available-for-sale  28,246  28,452
Securities held-to-maturity (fair values of $31,166 and $19,925)  30,829  19,713
Federal Home Loan Bank stock (at cost)   4,014  4,339
Loans   424,977  410,794
Allowance for loan losses   (3,566)  (3,371)
Loans, net   421,411  407,423
     
Premises and equipment, net  3,670  3,818
Cash surrender value of life insurance policies  19,042  18,713
Accrued interest receivable   1,528  1,527
Deferred income tax asset, net  5,803  5,739
Other assets   3,156  2,736
Total assets  $ 557,910  $ 554,189
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:    
Non-interest-bearing  $ 41,735  $ 38,483
Interest-bearing  370,732  374,162
Total deposits  412,467  412,645
Federal Home Loan Bank advances  24,000  18,000
Accrued expenses and other liabilities  8,037  7,842
Total liabilities  444,504  438,487
     
Stockholders' equity:    
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued  --  --
Common stock, $0.01 par value; 100,000,000 shares authorized; 7,141,500 shares issued at March 31, 2012 and September 30, 2011  71  71
Additional paid-in capital  70,021  69,437
Retained earnings  55,090  53,677
Accumulated other comprehensive income   49  56
Unearned restricted shares; 272,310 shares at March 31, 2012  (4,213)  --
Unearned compensation - ESOP  (5,070)  (5,213)
Treasury stock, at cost; 176,875 and 168,300 shares at March 31, 2012 and September 30, 2011, respectively  (2,542)  (2,326)
Total stockholders' equity  113,406  115,702
Total liabilities and stockholders' equity  $ 557,910  $ 554,189
 
 
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARY
         
CONSOLIDATED STATEMENTS OF INCOME 
         
         
  Three Months Ended September 30, Six Months Ended
  March 31, March 31,
  2012 2011 2012 2011
  (Unaudited)
  (Dollars in thousands, except share data)
Interest and dividend income:        
Interest and fees on loans  $ 4,806  $ 5,059  $ 9,673  $ 10,135
Interest on debt securities:        
Taxable  242  68  513  143
Other interest  17  30  41  74
Dividends on equity securities  6  3  9  3
Total interest and dividend income  5,071  5,160  10,236  10,355
         
Interest expense:        
Interest on deposits  686  836  1,455  1,726
Interest on Federal Home Loan Bank advances  140  183  262  428
Total interest expense  826  1,019  1,717  2,154
Net interest and dividend income  4,245  4,141  8,519  8,201
Provision for loan losses  125  160  250  220
Net interest and dividend income, after provision for loan losses  4,120  3,981  8,269  7,981
         
Non-interest income:        
Customer service fees  206  192  415  401
Loan servicing (costs) fees, net  (26)  26  (13)  52
Net gain on sales of mortgage loans  7  24  7  123
Increase in cash surrender value of life insurance  171  122  329  239
Other income  17  73  90  161
Total non-interest income  375  437  828  976
         
Non-interest expense:        
Salaries and employee benefits   2,482  1,964  4,607  3,968
Occupancy expense  244  231  460  439
Equipment expense  112  104  224  213
Professional fees  121  217  224  330
Advertising expense  161  30  308  63
Data processing expense  204  190  400  376
Deposit insurance expense  50  119  110  242
Other expense  206  305  526  629
Total non-interest expense  3,580  3,160  6,859  6,260
Income before income taxes  915  1,258  2,238  2,697
Provision for income taxes   327  434  825  896
Net income   $ 588  $ 824  $ 1,413  $ 1,801
         
Weighted-average shares outstanding:        
Basic  6,231,753  6,603,508  6,302,352  6,591,605
Diluted  6,236,209  6,603,508  6,304,580  6,591,605
         
Earnings per common share:        
Basic  $ 0.09  $ 0.12  $ 0.22  $ 0.27
Diluted  $ 0.09  $ 0.12  $ 0.22  $ 0.27
CONTACT: Maurice H. Sullivan, Jr.
         (617) 254-0707
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